APB Revises Guidance on UK Bank Reports for Audit Purposes

Jack Humphrey, Regulatory journalist
February 23, 2011 /

The Auditing Practices Board (APB) has published February 22 the revised Practice Note on “Bank reports for Audit Purposes in the United Kingdom” with exposure draft seeking public comments that has been previously released last July 2010.

According to APB, the move to revise the guidance on bank reports in UK reflects the publication of the clarified International Standards on Auditing (ISAs) (UK and Ireland) in October 2009.

“There was a need to update the APB’s Practice Notes to reflect the new auditing standards,” the APB said.

“The changes required to [the Practice Note] were relatively limited, the main one being to recognise that the requirement for the auditor to consider whether external confirmation procedures are to be performed is now included in ISA (UK and Ireland) 330, The auditor’s responses to assessed risks, rather than ISA (UK and Ireland) 505, External confirmations, which now focuses on the design and performance of external confirmation procedures to obtain relevant and reliable audit evidence.”

Even though the revised Practice Note on bank reports reflects the issuance of ISA (UK and Ireland), the process about the “procedures auditors use when requesting confirmation of balances, transactions or arrangements from the bankers of an entity being audited” remains the same, said Richard Fleck, APB Chairman.

The said agreement took place in 2007 between the UK auditing profession and the British Bankers Association (BBA).


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